New York Yankees Will Pay $29.1 Million Luxury Tax Bill

The New York Yankees will pay a record $29.1 million luxury tax bill after the season. The team is taxed 50% on every dollar over the $178 million luxury tax threshold.

Yankees ownership has made it no secret that they intend to get under the luxury tax threshold — which increases to $189 million in 2014 — next year and beyond.

Of course if Alex Rodriguez is suspended next year and Mariano Rivera follows through on his retirement plans the team would save approximately $34 million on next years tab.

The Yankees have paid approximately $253 million in luxury tax since the system was implemented in 2003. Every other team in baseball has paid roughly $32 million combined.

The Red Sox, Tigers and Angels are the only other clubs to pay the tax over the years.

Conversely the Los Angels Dodgers will reportedly pay a a $9.9 million tax bill on a payroll of $234.5 million. The Dodgers are taxed at a lower rate of 17.5% as first time offenders,